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Monthly Archives: June 2011

Braskem (BAK): A Defensive Stock from Brazil

June 30, 2011
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Markets have shown some strength in the past week, raising hopes that we may have put in a bottom, and that the current correction may be winding down. But remember the old saying, “If you think it’s a bottom you’re too early. If you know it’s a bottom, you’re too late.” We don’t try to call bottoms, preferring to use our market-trailing timing indicators to tell us clearly when we’re in a new uptrend. But it hasn’t happened yet. So I have a stock today that’s not the fastest horse in the race, but makes up for it with...

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The Stock Market is Not the Economy

June 29, 2011
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The Stock Market is Not the Economy

As an investor, it’s important to remember that the economy is not the same thing as the stock market, and vice versa. The market can roar ahead even while the economy is struggling, and stocks can falter despite economic growth. But that’s not to say you should ignore news about the economy. For one thing, investors’ expectations are what do drive the market, and those expectations are certainly influenced by the economy–and by how investors feel about the economy. Plus, on days like last Friday, faced with headlines like “Dow slides for seventh week out of eight,” it’s hard...

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How to Compare Growth Stocks

June 28, 2011
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Lst week a doctor from Long Island City, New York asked, “Is there a website where I can find the earnings estimate for the next year of a certain company? I read somewhere that the fair price of a stock = next year’s earnings estimate X 20. I would certainly appreciate your help.” I told the good doctor he could find a decent free screener by searching Yahoo Stock Screener. But then I told him why it probably wasn’t a very good idea, and now I’ll tell you, too. There are MANY financial yardsticks by which stocks can be...

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What Wedding Planning Can Teach Us About Investing

June 27, 2011
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What Wedding Planning Can Teach Us About Investing

This weekend probably isn’t particularly significant for most people, but for me, it marks two months until my wedding day. In the last year of planning, I’ve learned some valuable lessons that also apply to investing and I’ll share them with you today. So without further ado … 1.) Decide on a budget and asset allocation. The first thing you need to do when you start planning a wedding is come up with a budget. Once you determine the total amount you’ll spend, you need to figure out where to allocate it. What’s most important to you? Gourmet food...

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All Is Not Lost That Is In Peril

June 25, 2011
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All Is Not Lost That Is In Peril

Now for today’s Contrary Opinion Button. Remember, you can always view all of the buttons by clicking here. All Is Not Lost That Is In Peril A perfect contrary sentiment (and one repeated in several other phrasings) this button reminds us that worry can be a good thing. If an investment is viewed to be in peril, it may well have already been pushed down by investors selling in fear, and thus be much closer to a bottom than a top.

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